Archive · 23 Jul 2026
Chennai Petroleum Q1 Profit Rises on Strong Refining Margins
Chennai Petroleum Corporation Ltd (CPCL) made a lot of money in the first three months of 2026.
They earned ₹1,031 crore, which is a big improvement from the same time last year when they lost ₹40 crore.
They sold more products and made more money from each barrel of oil they refined.
The company had to deal with some challenges, like higher costs for buying oil and problems getting oil from the Middle East.
But they managed to keep their factories running at full capacity and even set a new record for how much useful fuel they made from each barrel of oil.
The company's leader, H Shankar, said they will keep working hard to make sure they stay profitable even when the world's oil market is unpredictable.
Chennai Petroleum Corporation Ltd (CPCL) reported a consolidated net profit of ₹1,031 crore for Q1FY27, up from a net loss of ₹40 crore in the same quarter last year.
Revenue rose 57% to ₹29,359 crore from ₹18,683 crore a year ago.
Average Gross Refining Margin (GRM) nearly tripled to $8.78 per barrel from $3.22 per barrel a year earlier.
The company achieved a crude throughput of 2.85 million tonnes and maintained 108% capacity utilization.
The company recognized ₹385 crore as additional revenue following a retrospective revision in petroleum product prices.
- Who
- Chennai Petroleum Corporation Ltd (CPCL)
- What
- Reported a consolidated net profit of ₹1,031 crore for Q1FY27
- When
- Quarter ended June 30, 2026
- Where
- Chennai, India
- Why
- Due to stronger refining margins and operational efficiency
Operational Challenges
Financial Performance
Crude Procurement
Operational Challenges
The company faced challenges in sourcing Middle East crude due to geopolitical constraints, relying on Russian and African crude.
Financial Performance
Despite procurement challenges, the company achieved a crude throughput of 2.85 million tonnes and maintained 108% capacity utilization.
Crude Prices
Operational Challenges
Crude procurement costs increased sharply, with average crude prices nearing $100 per barrel, and discounts largely disappeared.
Financial Performance
The company benefited from lower excise duty following the reduction in central excise on petrol and diesel, resulting in a lower excise outgo.
- Consolidated Net Profit
- ₹1,031 crore
- Revenue
- ₹29,359 crore
- Average Gross Refining Margin (GRM)
- $8.78 per barrel
- Crude Throughput
- 2.85 million tonnes
- Capacity Utilization
- 108%
- Highest-Ever Distillate Yield
- Achieved
- Additional Revenue
- ₹385 crore
- Crude Prices
- $100 per barrel